Sagax

We take a "buy and hold" approach, and we refrain from all forms of property trading, speculative development and other short-term opportunities that might distract us from developing long-term value. 

BUSINESS CONCEPT 

We invest in commercial property, focusing on the warehouse and light industrial sector. 

STRATEGY 

Our focus is on growth, which we achieve through our proven business model, maintaining strong key financial metrics, and increasing our property presence in existing regions. 

We apply our long-term strategy to both new and existing leases. We avoid maximizing rent levels in favor of signing longer leases with reputable, creditworthy tenants, and we primarily enter into leases that exclude the cost of heating and hot water, to limit the effects of changing rates for utilities like heating, electricity, property tax, water and sewage. This helps us reduce the risk of vacancies, as well as the cost of letting and adapting premises to tenant needs. 

REFINING RISK-ADJUSTED PERFORMANCE 

We invest in properties and markets that are expected to generate a high risk-adjusted return, focusing on regions with diversified business activities and stable population growth. Since the company was founded, our core markets have been Stockholm and Helsinki - and we continue to acquire new properties there. In the last decade, we have also increased our presence across Europe, primarily in France (Ile-de-France region), the Netherlands (Randstad region), and Spain (Madrid and Barcelona). 

In the next 10 years, Europe will experience further urbanization, promising a strong opportunity for the development of commercial properties in the markets where Sagax is already present. The risk of a decline in occupancy rates and rent levels due to a weaker rental market is regarded as relatively low, owing to the stable demographic growth and diversified business operations in these markets. 

We aim for well-balanced fixed-interest and debt maturity profiles to secure our operating cash flow. This creates excellent conditions for both expansion and an attractive return on equity.